Small-Scale Technology Certificates in Australia

Introduced to stop small-scale generation crowding out investment in large-scale generation, the STC market differs from its LGC sibling in more than simply the smaller size of the installations.

The first difference is the existence of the Clean Energy Regulator Run Clearing House (CH). The CH is a platform via which Liable Entities can purchase STCs in unlimited numbers at a set price of $40, thus setting a theoretical price cap for the market

The vast majority of STC activity, however, takes place in the over-the-counter market where buyers and sellers interact in the spot and forward marketplaces, which is the market within which TFS operates.

The second major difference to the STC market is the requirement that Liable Entities surrender STCs quarterly, rather than annually as is the case with LGCs. Quarterly surrender was introduced to encourage liquidity by forcing buyers into the market more regularly.

The 2019 Small-scale Technology Percentage (STP) has been set at 21.73%, equivalent to approximately 37,500,000 STCs.

For more information on the Renewable Energy Target, visit:

www.cleanenergyregulator.gov.au/RET

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